Forex: GBP/USD Technical Analysis – Stalling at Range Support
To receive Ilya's analysis directly via email, please SIGN UP HERE
- GBP/USD Technical Strategy: Flat
- Support: 1.6593 (23.6% Fib ret.), 1.6452 (38.2% Fib ret.)
- Resistance: 1.6742 (Feb 14 close), 1.6785 (38.2% Fib exp.)
British Pound indecision continues as prices continue to tread water support at 1.6593 to the US Dollar, a level marked by the 23.6% Fibonacci retracement. A pair of back-to-back indecision candles hint a turn higher may be ahead, with a break above resistance at 1.6742 (February 14 close) exposing the 38.2% Fib expansion at 1.6785. Alternatively, a push through support targets the 38.2% retracement at 1.6452.
On balance, our fundamental view leans toward British Pound weakness against the greenback. Entering short with prices sitting squarely at support is unattractive from a risk/reward perspective however. We will opt to wait on the sidelines for now until an actionable setup presents itself.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.